The balances of the ledger accounts of Talbot Furniture as of P.0.4,5 December 31, the end of its fiscal year, are as follows:

Data for the adjustments are as follows:
a-b. Merchandise Inventory at December 31, $101,676.

c. Wages accrued at December 31, $1,956.

d. Supplies inventory at December 31, $744.

e. Depreciation of store equipment, $5,868.

f. Depreciation of office equipment, $1,732.
g. Insurance expired during the year, $632.
h. Rent earned, $2,400.
Instructions 1. Complete the work sheet after entering the account names and balances into the work sheet.
2. Journalize the adjusting entries.
Check Figure Net income, $35,480

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Cash Accounts Receivable Merchandise Inventory Supplies $ 11,592 42,962 121,838 1,570 Prepaid Insurance 1,628 Store Equipment 36,924 Accumulated Depreciation, Store Equipment 29,420 Office Equipment 9,436 Accumulated Depreciation, Office Equipment 1,720 Notes Payable 4,000 Accounts Payable 30,822 Wages Payable Unearned Rent P. Talbot, Capital P. Talbot, Drawing 3,200 120,532 28,000 Income Summary Sales 652,000 Sales Returns and Allowances 9,748 Rent Income Purchases 518,374 Purchases Returns and Allowances 13,440 Purchases Discount 7,634 Freight In 24,724 Wages Expense 55,200 Depreciation Expense, Store Equipment Depreciation Expense, Office Equipment Supplies Expense Insurance Expense Interest Expense 772